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"Because agricultural demand is inelastic, a technological advance that lowers costs will reduce total revenues. Thus, farmers have no incentive to adopt such new technology." True or false? Explain
An economy is initially at the natural level of output. There is an increase in government spending. Use the ISLM model to illustrate both the short-run and long-run impact of this policy change. Be sure to label: i. the axes; ii. the curves; iii. th..
For each of the following, identify whether the statement is true, false or uncertain and justify your answer. a) If everyone has the same marginal rate of substitution, then the allocation is Pareto efficient. b) If a policy change increases social ..
Is the natural rate of unemployment fixed? Why or why not? How are full employment and the natural rate of unemployment related?
How would you expect the following to affect the economy wide demand for money? The demand for money represents the desire of households and businesses to hold assets in a form that can be easily exchanged for goods and services.
If the natural rate of unemployment is 4 percent and the actual rate of unemployment is 5 percent, Okun's law states that the output gap is ________ and the economy is in a(n) ________.
How much do you have to deposit today in order to allow 6 annual withdrawals, beginning at the end of year 17, with a first withdrawal of $1403 and with subsequent withdrawals decreasing at the rate of 2% over the previous year’s withdrawal? Assume a..
Does this critical path make sense. Do your predecessors make sense. How accurate are your durations? What could be done to improve accuracy of your durations.
Specific identification, because it correctly identifies the actual item sold and so the actual cost is recorded on the income statement.
Which of the following two bonds is more price sensitive to changes in interest rate? A zero coupon bond, Y, with 5-year-to-maturity and 10% yield-to-maturity. Both have the same sensitivity because they have the same yield to maturity.
q1. a hearing is scheduled for your company to present arguments that your firm has not increased its market power
Illustrate what is the maximum amount your firm should be willing to spend on lobbying efforts to prevent the cost from being regulated at the socially optimal level.
Suppose that Lorena consumes only three different goods: steak knives, butter knives, and butcher knives. If, according to Lorena’s preferences, butter and butcher knives are inferior god, must steak knives be a normal good?
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